S&P lowers Transworld Systems

S&P said it lowered its corporate credit rating on Transworld Systems Inc. to D from CCC- and lowered the rating on Transworld's senior secured debt to D from C.

The agency said the downgrade follows Transworld's recent announcement that it did not make its interest payment due on Feb. 15 on its 9˝% secured notes due 2021.

“The company has a 30-day grace period, but we do not expect it to make the payment within that time given the company's heavy debt burden, which we view as unsustainable,” S&P said in a news release.

“Transworld has announced that it has entered into discussions with certain holders of the notes and other stakeholders and that it will use this time to pursue a restructuring.”

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